S-97 was sized to a mission spec closer to ARH, so it’s quite a bit less capable than the FVL CapSet 1 requirements, but FARA seems like it's possibly in between the two. I doubt S-97 meets the FARA requirements, as-is. The industry has invested quite a bit of money in the Valor and the recent group of rigid coaxials. If any of this yields a program, I have some hope the taxpayers will get a decent deal.
As for cost cost of the S-97 or similar aircraft, the physical cost should be predictable. You’re paying for a second rotor system, a moderately more complex transmission, and a more powerful tail drive system. Those are all estimatable. Like most modern aircraft, the real cost variability is in the fly by wire and mission systems integration, and with the advanced “digital quarterback” feel of the FARA spec, any entrant is going to carry a risk there.